Spot gold prices rose 1.4% on Friday morning, putting the precious metal on track for its first weekly gain in five weeks.
The move marks a significant shift in momentum after the metal came under sustained pressure throughout the year, posting its worst quarterly performance in years.
Spot gold surged to test $4,180 per ounce during the session, capitalizing on the reduced real yield outlook.
The rebound was driven by a sharp recalibration of Federal Reserve policy expectations.
Investors scaled back bets on a looming rate hike following weaker-than-expected US labor market data.
This shift in sentiment provided immediate relief to precious metals, which had been weighed down by higher-for-longer rate fears.
Spot gold surged to test $4,180 per ounce during the session, capitalizing on the reduced real yield outlook.